Melaka ICT Strategic Blueprint

31 December 2005

“The future never just happened; It was created” Will and Ariel Durant - The lessons in history

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A note to the user of this document
This report contains 4 primary sections in 8 different chapters. The “Chapter Guide” as shown below is used throughout the report to guide readers to understand the report better. The “Chapter Guide” has also been mapped to the Terms of Reference (TOR) of the study

Chapters 1&2

Chapter 3

Chapter 4

Chapters 5, 6 & 7

Chapter 8

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2

3

4

5

6

7

8

9

10

11

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Terms of Reference 1. To study and analyze existing foundations and strategies in the ICT Sector in Melaka 2. Gauge and review the effectiveness of project/program implemented in the ICT Sector 3. To identify primary issues impeding the implementation of planned strategies/projects/programs and to recommend actions to address issues identified 4. To recommend directions, foundations, strategies, projects and programs to plan and manage the Melaka ICT Sector to be more competitive 5. To improve the ICT infrastructure and infostructure 6. To increase the production of ICT skills and experties 7. To reduce the digital divide between urban and rural populations 8. To increase the application and commercialization of ICT 9. To stimulate entrepreneurship activities in the field of ICT 10. To create a monitoring mechanism for ICT implementation in Melaka 11. To benchmark the Melaka ICT Sector against other develop state and nations 12. To study the impact of the global economic climate on the Melaka ICT Sector and recommend strategies or actions necessary to increase competitiveness and sustainability

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Table of Contents
ACKNOWLEDGEMENT …………………………………………………………………………. 4 EXECUTIVE SUMMARY …………………………………………………………………………. 6 1 2 3 4 5 6 7 8 INTRODUCTION ……………………………………………………………………………..32 CURRENT STATE ANALYSIS ………………………………………………………… 45 ISSUES & CHALLENGES ………………………………………………………………… 56 SETTING THE DIRECTION …………………………………………………….…….. 66 THE ICT STRATEGIC FRAMEWORK ………………………………………………. 96 PROGRAMS & PROJECTS ……………………………………………………………. 101 IMPLEMENTATION TIMELINE …………………………………………………….. 119 CONCLUSION ………………………………………………………………………………. 121

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Melaka ICT Strategic Blueprint

ACKNOWLEDGEMENT

Acknowledgement
During the course of the study, we have been privileged to have had the opportunity to discuss, deliberate and debate with distinguish stakeholders and key players pertaining to various challenges facing the State as well as to identify means of unlocking relevant touch points pertinent to the State’s ICT sector to realize its full potential. In this regard, we hereby gratefully acknowledge the invaluable contributions from the parties involved which have ensured the success of this study. We would also like to record our special thanks to Encik Zainal Husin, the Director of the State Economic Planning Unit (UPEN) for his guidance and wisdom in championing this project. Our deepest and sincere appreciation also goes to members of the Melaka Cybercentre Secretariat at UPEN for their dedication and commitment to this project. Special mention goes to Dr. Mohd Haflah Piei, Encik Abul Khair Yahya, En Mohd. Hamin Talib, Dr. Noraini Baba and En. Ismail Lajen for their enlightening ideas, thought process and references. We would also like to thank the entire Melaka State Government IT Commitee who have significantly contributed to the development of this report. Your valuable contributions are a significant step towards realizing Melaka’s vision to “Recapture past glory through rapid advancement in knowledge and ICT towards a fully developed K-State”.
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Melaka ICT Strategic Blueprint

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY:

Current State Analysis
High Readiness: • Ready infrastructure – satisfactory internet/access points • Initiated a reasonable number of good programs & community involvements • High internet penetration • High ICT literacy • High PC penetration
Comprises: • • • Students, Working Population, Housewives & Retirees Rural & Urban Young & Old

Low Readiness: • Most businesses not ICT enabled • Mainly internal process driven
COMMUNITY SECTOR PRIVATE SECTOR

• No real collaboration/sharing

Comprises:

PUBLIC SECTOR

• •

Manufacturing Services

Medium Readiness:
Comprises: • • • State Govt Admin Office District & Land Offices District Local Councils

• Growing investment in ICT • Good back end systems / connectivity • Projects not integrated (Pockets of initiatives)
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EXECUTIVE SUMMARY:

Tourism and Manufacturing driving Melaka’s GDP

Construction 2.8% Agriculture 3.9% Mining 0.1%

GDP equivalent to 3% of Malaysian economy GDP growth faster than Malaysian economy GDP per Capita higher than national average Tertiary sector is the biggest sector & driver of growth. 65% of Melaka’s GDP contributed by the services sector growing at approximately 10% per annum from 2002 to 2004

Other Services 37% 4% 3%

28%

65%

•Private health services is thriving in Melaka. Indonesian patients visit Melaka’s private hospitals due to its cost competitiveness. Doctor to patient ratio is one of the highest in the nation
Tourism 28%

•28% of Melaka
economy is derived from tourism

•1 in every 4 of tourists
Manufacturing 28% to Malaysia visits Melaka.

•Manufacturing contributes 28% of the
economy.

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EXECUTIVE SUMMARY:

Melaka – desirable business environment
• Among the lowest SAIDI Index for electricity in Malaysia which shows strong stability in power supply • Melaka offers higher quality of life compared to the Malaysian average
INDICATORS • SAIDI Index (projected) • No of hospital bed per 100,000 population • Population per doctor • Population per dentist • No of post offices per 100,000 population • Road Development Index • Fixed telephone line per 1,000 population • Air Quality Index • Crime per 1,000 population YEAR 2004 2003 2003 2003 2002 2004 2004 2004 2004 MALAYSIA 111.4 177.6 1,377 10,399 2.5 0.22 189.5 40 6.1 MELAKA 74.2 220.5 1,138 7,898 3.4 1.09 209.7 49 4.6
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EXECUTIVE SUMMARY:

Manufacturing sector growth not impressive of late
Net FDI Inflow (USD Billions) 60.0
50.0 40.0 30.0 20.0 10.0 0.0 1990 -10.0 China India Malaysia Singapore
Source: Database of UNCTD, 2005

1995

2000

2001

2002

2003

• Growth of FDI Inflow to Malaysia fueled by the manufacturing shown signs of weakening • Recent development has seen China as world largest FDI recipient (specifically in manufacturing and E&E) due to its significant cost advantages • Malaysia will find it difficult to attract new sizeable investments in manufacturing and will need to move to higher value add activities to maintain growth
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EXECUTIVE SUMMARY:

Tourism Sector yet to fully leverage on ICT potential
The Tourism Industry in Melaka is one of the largest contributor to the state GDP (28% of GDP - RM3.4 bil) – Malaysia’s Tourism revenue stands at RM29.7 billion in 2004 4 mil tourists visits Melaka annually (i.e. 1 in 4 tourists to Malaysia) - 75% of tourists are domestic travelers - Significant number of tourists are day-travelers which resulted in Melaka inability to secure tourism revenues proportionate to the number of tourist arrivals (potential: RM7.4 billion) Malaysian suppliers generally slow to exploit potential of E-Commerce. Static web presence widespread, but limited in content. Little “E-Enablement” or integration into operational systems. On-line products are generally point-to-point air tickets, hotel rooms only booking etc. In Canada, online booking represent one-third of all travel spending while 60% of travelers uses internet for pre-travel research (Malaysia: 14.7%) - Currently, many tourist information websites are available on Melaka but none of these websites posses e-commerce transaction capabilities and are mostly non-interactive types. (PhocusWright, 2002) Tourists from North America and Europe recorded high online travel bookings (>60% of world online travel), an are where Melaka Tourism Sector should exploit Higher foreign travelers, higher average length of stay and higher tourist spending is possible if the state’s Tourism Sector leverages on the power of ICT
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EXECUTIVE SUMMARY:

Interpreting the Vision
Core Purpose
• Economic growth - ICT to accelerate growth of Melaka (as a sector & enabler) • Bridging the digital divide - Make ICT education accessible & affordable to all citizens of Melaka • Wealth creation - Utilization of Knowledge and ICT to increase the wealth of citizens of Melaka

Core Values
Rich in heritage Service oriented Progressive & dynamic Progress with Quality of Life

ICT VISION “Recapture past glory through rapid advancement in knowledge and ICT towards a fully developed K-State”
Envisioned Future
• ICT as an important sector in Melaka economy • ICT as the recognized enabler for Melaka economic sectors • A developed state with balanced spiritual and physical development • K-Society 12

EXECUTIVE SUMMARY:

Overview of the Strategic ICT Framework
Recapture past glory through rapid advancement in knowledge and ICT towards a fully developed K-State
Strategic Direction 1 Increase economic wealth by focusing on high growth sectors Strategic Enabler 1 ICT Infrastructure & Infostructure Strategic Enabler 2 Education & skills Strategic Actions Develop and nurture high growth sectors to drive towards 2010 Maximize economic potential of high growth sectors using ICT Promote conducive environment to encourage higher valueadd activities Build partnerships with relevant organizations and align policies and incentives Gradually reduce dependency on traditional economic drivers Strategic Direction 2 Develop KnowledgeBased Society & Develop Responsive Skill Base Strategic Actions Enhance infrastructure to improve information dissemination/availability Create ICT awareness and cultivate interest in knowledge and ICT Develop or expand human capital through targeted knowledge and skills development Create incentives to encourage partnership between IHLs, R&D centres and the industry Strategic Direction 3 Create a Client-Friendly Government Strategic Actions Making the Government more efficient, transparent and accessible to its clients using the power of ICT Support transition to electronic government environment through retraining and change management programs Instill commercially oriented customer relationship management processes and culture in the government

Strategic Enabler 3 Entrepreneurship

Strategic Enabler 4 Market Relationships

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EXECUTIVE SUMMARY:

Strategic Direction I: Focusing on High Growth Sector

Program 2 Program 2 Attract SSO Firms Attract SSO Firms Program 1 Program 1 Tourism Promotion Tourism Promotion Portal Portal
Strategic Direction 1 Strategic Direction 1 Increase economic Increase economic wealth by focusing on wealth by focusing on high growth sectors high growth sectors

Program 33 Program Tourism Content Tourism Content Development Development

Program 66 Program Biotechnology & Biotechnology & Bioinformatics Bioinformatics

Program 4 Program 4 Re-position Re-position Health/Education Health/Education Tourism Tourism

Program 55 Program Partnerships for Partnerships for Organized Growth Organized Growth

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EXECUTIVE SUMMARY:

SD-1 Program: Tourism Promotion Portal
INITIATIVE • To upgrade and unify current tourism related websites in Melaka under one comprehensive tourism portal sponsored initially by the State Government – portal may be handed over to the private sector once critical mass is achieved • To provide opportunities for small and medium players in the Melaka Tourism Sector to offer their offerings on the internet • To facilitate electronic purchase of tourism products in Melaka RATIONALE • At present, the current portal is static and non-interactive. Tourists should be able to do everything on the internet from booking flight to booking hotel rooms to finding information about in-city transportation to operating hours of tourist spots. • Electronic purchase over the internet can be stimulated if it is fully backed by a trusted party the such as the State Government • A State Government backed portal will make it financially feasible for small to medium tourism product supplier to market their product electronically POTENTIAL BENEFITS • Exposing the local tourism sector to more tourists specifically from developed nations with higher spending power • 40%-60% boost to tourism earnings in the State above the existing growth pattern – estimated increase of RM1.3 billion to RM2.0 billion of GDP per annum
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E

EXECUTIVE SUMMARY:

SD-1 Program: Attract SSO Firms
INITIATIVE • To attract Shared Services Outsourcing Firms to choose Hang Tuah Jaya as the preferred centre of operations
E

RATIONALE

• Melaka’s position in between the Klang Valley and Singapore makes it an attractive location for SSO Firms • The creation of a Cybercentre in Melaka will enable Melaka create the ideal business environment (high quality infrastructures and performance guarantees) which is conducive to SSO business • Melaka posses the right balance of hard and soft infrastructures with reasonably high quality of life to attract SSO businesses • Currently, Singapore Telecom is using Melaka for its SSO due to its cost advantage and various factors conducive to the SSO business POTENTIAL BENEFITS • Creation of employments for 10,000 to 15,000 knowledge-workers • Attracting high quality telecommunications and other business related infrastructures which will contribute towards creating the critical mass to enable comprehensive rollout of broadband in the State • Generating consistent and assured income for the state and boosting the State’s GDP by RM1 –RM2 billion per annum • The influx of k-workers will also create a positive impact to other sectors of the local economy to further boost the local service sector
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EXECUTIVE SUMMARY:

SD-1 Program: Tourism Content Development
INITIATIVE • To develop a Tourism/Culture/Multimedia Content Industry through involvement from the Government, IHLs and local technopreneurs serving the Melaka tourism sector. RATIONALE
E

• Melaka possess the right mix of IHLs to support a Tourism/Culture/Multimedia Content Industry • Virtual tours, clips and scenes will be developed using existing archives and scriptures. Output from the Content Industry will then serve to increase the quality of tourism products (e.g. museums, zoos, tourist parks, etc) and attract nurture more interest and boost revenues from the tourism sector. • As content will be required to be continuously updated, a steady stream of income will be generated to create a sustainable growth to the proposed Content Industry and attract more technopreneurs to participate and locate their operations in Melaka POTENTIAL BENEFITS • Contributing towards making Melaka a more “event tourism” oriented from the existing “place tourism” oriented. This will encourage more repeat visits by tourists and further boost income and growth of the local tourism sector • Creating Melaka’s own Content Industry generating up to RM500 million demand in the local economy • Encourage the creation of critical mass in the Content Sector which will ultimately grow beyond serving the local tourism sector
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EXECUTIVE SUMMARY:

SD-1 Program: Re-position Health/Education Tourism
INITIATIVE • To collaborate with the Health and Education sectors and review/reposition offerings on Health and Education Tourism around suitable niche within each sector (e.g. Education Tourism to focus on tourism management, Hotel catering, public relations, multimedia content development, etc. while Health Tourism to focus on Cardilogy, Cancer, etc) • Including the re-packaged Health and Tourism sector products on the Central Tourism Portal initiative highlighted under SD-1 RATIONALE • Currently each health/education tourism sector is promoting itself in isolation without specific focus. Both sector needs to be repositioned and strengthen in specific niche areas to create a clearer market positioning to their clients and attract more high value clients • Melaka needs to ensure that the market it carves for itself in both sectors are sustainable. A clear market strategy which involves specific niche and focus areas will make Melaka more attractive to potential clients while at the same time ensures that investments made in marketing reap maximum returns. Carving the right niche and focus areas may also reduce effect of competing and similar sectors in neighboring nations POTENTIAL BENEFITS • Advertising and promotion cost would be reduced as it is shared between the health/education and the tourism sectors • Stronger brand as Melaka places herself in a niche specialized market

E

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EXECUTIVE SUMMARY:

SD-1 Program: Partnerships for Organized Growth
INITIATIVE • To create partnerships with commercial and IHL organizations to ensure that other sectors of the economy grows in tandem with the demand created by key focus sectors. RATIONALE
E

• Requirement of knowledge workers and technology companies such as higher quality housing, entertainment, office space and etc can be developed to further improve the commercial attractiveness of the state for business relocations and as centre of operations • Demand generated resulting from the expansion of focus sectors (tourism, ICT and biotechnology sectors) can be anticipated and met to encourage a higher yet more balanced growth in the local economy

POTENTIAL BENEFITS • Increase commercial attractiveness of the Melaka State to SSO Organizations, Technology Companies and Knowledge Workers • Facilitate a balanced growth in other sectors of the economy such as properties, construction, education and services

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EXECUTIVE SUMMARY:

SD-1 Program: Biotechnology & Bioinformatics
INITIATIVE • Focus on biotechnology and encourage the use ICT to maximize potential. Set up database centre for biotech & bioinformatics • personalized medicine & healthcare • traditional herbal medicinal plants • cataloging DNA marker technology for herbal & traditional medicine • database screening for anti cancer RATIONALE • Growth of biotechnology sector estimated to average from 12% to 17% annually will further boost the State’s GDP • Biotechnology and bioinformatics sector is expected to be the leading growth sector in the world economy by 2030 and will continue to lead for a century to come POTENTIAL BENEFITS • Improved processes of biotech product, with spillover effect of improving cottage industries, e.g.: higher quality and longer lasting cencaluk, dodol and gula melaka enabling bigger commercial possibilities and higher profits • Participate in the high growing Malaysian herbal sector (estimated at RM2 billion annually) which is expected to grow to as large as RM13 billion by 2020

E

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EXECUTIVE SUMMARY:

Strategic Direction II: Developing K-Society and the Necessary Skill Base
Program 11 Program Development of Critical Development of Critical Mass Mass

Strategic Direction 2 Strategic Direction 2 Develop KnowledgeDevelop KnowledgeBased Society & Develop Based Society & Develop Responsive Skill Base Responsive Skill Base

Program 44 Program Aligning IHLs Aligning IHLs

Program 22 Program E-Melaka E-Melaka

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EXECUTIVE SUMMARY:

SD-2 Program: Development of Critical Mass
INITIATIVE • To develop critical mass of broadband users to encourage industry players to rollout infrastructure at the last mile. For the State Government, this shall involve connecting schools, IHLs, hospitals, government buildings, community centers, shopping malls, mosque, libraries and etc
E

RATIONALE • According to the National Broadband Plan, Malaysia has abundant availability of domestic backbone capacity as compared to last mile broadband infrastructure – a critical mass (5% connectivity) will encourage industry players to rollout infrastructure at the last mile • Broadband is critical in the development of k-society, k-economy and the quest to be a developed k-state: • Pre-requisite for high-speed info-communications access • New benchmark on national infrastructure and country competitiveness • Support expansion of Multimedia Super Corridor (MSC) nationwide • Facilitate the rollout of e-government and other flagship applications • Potential for bridging the digital divide hence the knowledge divide POTENTIAL BENEFITS • Intervention by the State Government (i.e. connecting Government agencies, schools, hospitals, etc) in developing critical mass will assist telecommunications industry to rollout broadband widely within the State and help in the efforts to develop a k-society in Melaka

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EXECUTIVE SUMMARY:

SD-2 Program: e-Melaka
INITIATIVE • To persist and continue with e-Melaka program to connect communities and increase ICT awareness specifically among rural populations and other segment of the population which are not exposed to ICT development RATIONALE • In its effort to develop a k-society, community and awareness program such as e-Melaka is important to ensure that • ICT awareness campaigns are implemented for population segments that are still not exposed to ICT development • Promote the State Government’s efforts to leverage on ICT to be more transparent and more customer friendly. This will ensure that more support can be gathered from the public - a critical ingredient of success

POTENTIAL BENEFITS • Increase visibility of the State Government efforts to the public and will help the Government to gather support from the public to bridge the digital divide • Act as a promotional campaign to inform the public of new developed e-Government applications and improve the ability of the Government to deliver its services more efficiently and effectively

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EXECUTIVE SUMMARY:

SD-2 Program: Aligning IHLs
INITIATIVE • To align IHLs in Melaka to offer more courses relevant to focus economic sectors (i.e. tourism, ICT and biotechnology sectors) • To encourage IHLs to get relevant accreditation from Lembaga Akreditasi Negara (LAN) and be more attractive to both local and overseas students

RATIONALE • As courses are recognized by LAN, IHLs will be more attractive to students, local and foreign. • Currently, there are not many IHLs offering courses in the services industry and Melaka is able to fill the niche

POTENTIAL BENEFITS • Development of k-workers which are suitable and relevant to key economic sectors • Creating an academic centre of excellence in the tourism and ICT sectors • Foreign students will help generate income through long stay

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EXECUTIVE SUMMARY:

Strategic Direction III: Creating a “Client-Friendly” Government

Program 11 Program Connecting PBTs/Depts Connecting PBTs/Depts

Program 44 Program Customer Relationship Customer Relationship Management Management

Strategic Direction 3 Create a Client-Friendly Government

Program 22 Program Implement EG Implement EG

Program 33 Program Change Management Change Management

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EXECUTIVE SUMMARY:

SD-3 Program: Connecting PBTs/Depts
INITIATIVE • To connect PBTs and government departments to each other creating a web of information • Offering of services online

RATIONALE

E

• Improve efficiency of processes by educating the public • Improve transparency of government processes and preparing the government for the new kenvironment • Providing the public with timely and accurate information to propel the local economy forward and support growth of key economic sectors

POTENTIAL BENEFITS • Reduced bureaucracy in Government processes and increase efficiency of government service delivery • Allow the State Government to focus on more strategic issue relating to developing sustainable economic growth reduce time required to deal with issues resulting from operational ineficiencies

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EXECUTIVE SUMMARY:

SD-3 Program: Implement EG
INITIATIVE • To fully implement electronic government at the State Government - the eGovernment programme aims at reinventing how the State Government works and improve the quality of interactions with citizens and businesses through improved connectivity, better access to information and services and better processes and systems. RATIONALE • To integrate all State Government and federal EG initiatives and develop e-clusters i.e. tourism , education, health, ICT and biotechnology • To enhance electronic delivery channel and mobile capability for Government portal • Multi-channel delivery of services (Internet, WAP, Public access points and Call centres) • To enhance efficiency of State Government’s overall service delivery

POTENTIAL BENEFITS • Creating a more “client-friendly” government - increase efficiency of State Government process and reduce unnecessary bureaucracy • Create performance culture where processes require less “turn-around” time • Implementation of one of the key indicators reflecting the transformation of Melaka towards a developed k-state

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EXECUTIVE SUMMARY:

SD-3 Program: Change Management
INITIATIVE • To implement change management programs throughout the entire State Government parallel to the implementation of e-Government and the rollout of online services from PBTs and other agencies RATIONALE
E

• Many are not ready to implement EG without training – Change Management programs will ensure that the advancement and improvement in technology and processes are supported by the appropriate quality and quantity of training programs and awareness campaigns to win the total support and commitment from Government staff • Past experience and lessons learned from the implementation of e-Government at Federal Government has shown that appropriate investment in Change Management is critical to ensure both people and technology can function in harmony to meet pre-implementation goals

POTENTIAL BENEFITS • Ensure that the transition from traditional processes to technology driven processes can be implemented smoothly with minimal user resistance • Ensure that all affected Government staff are well educated of the benefits of new processes and e-Government as a whole which is important as any negative feedback/perception from Government staff can negatively affect Government services to the public. Degradation of services resulting from lack of investment in Change Management may eliminate many potential benefits that should be reaped with e-Government implementation
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EXECUTIVE SUMMARY:

SD-3 Program: Customer Relationship Management
INITIATIVE • To implement a CRM solution for the entire state government to create a client friendly environment for businesses and citizens

RATIONALE

E

• CRM solutions will ensure that all issues and problems arising from Government services rendered to business and the public are handled swiftly • Implementation of such solutions will reduce bureaucracy and highlight weaknesses in Government processes facilitating continuous improvement and promoting a performance driven culture

POTENTIAL BENEFITS • Melaka to be attractive for business due to the transparent and client-friendly environment • Create Government that is more knowledge and information driven as opposed to the traditional Government that is slower and process driven

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EXECUTIVE SUMMARY:

Implementation Timeline
2006 Project Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 Project 7 Project 8 Project 9 Project 10 Project 11 Project 12 Project 13 Implement CRM 30
Q1 Q2 Q3 Q4 Q1

2007
Q2 Q3 Q4 Q1

2008
Q2 Q3 Q4 Q1

2009
Q2 Q3 Q4 Q1

2010
Q2 Q3 Q4

Tourism Promotion Portal Attracting SSO Firms Tourism Content Development Reposition Health & Education Tourism Smart Partnership for Organized Growth Develop Biotechnology & Bioinformatics Sector Critical Mass for Broadband eMelaka – Phase II Melaka as Centre of Excellence Connecting PBTs/Deptst Implementing e-Government Change Management

EXECUTIVE SUMMARY:

Conclusion
Enhance Economic Competitiveness RM43 mil
Content Development SSO Sector Development 5 15 Tourism Promotion Portal 15 10 3 5 5

30%

Developing K-Society RM10 mil
Biotechnology Broadband Critical Mass E-Melaka

10%

RM108 million for 13 projects within 5 years towards K-State development Critical Success Factors: “Result oriented” - Focus on ICT implementation and buy-in rather than hardware and infrastructure “People centric” - K-Society (K-Workers) development utmost importance to fuel economic growth in service centric environment “Synergy & Sharing” - Integrated & Collaborative implementation vital across public sector, private sector and communities “Control over things...then things under control” – Professional management of projects (K-State program) needs capable delivery focused team, hands-on, onground “Proactive not reactive” – Projects need to have longer term view, regional and global focus and responsive to market changes ad dynamism 31

Connecting PBTs

10 30 10 CRM Solution Change Management E-Government,

RM65mil Government Service Delivery Excellence

60%

Melaka ICT Strategic Blueprint

1.0. INTRODUCTION

1. Introduction
• Founded in the year 1396, Melaka represents one of the oldest recorded civilization in Peninsular Malaysia. Located strategically at the heart of South East Asia, Melaka was known in the 15th century as the centre of trade and knowledge of the region. Its historical influences have bequeathed Melaka with a delightful mixture of people and cultures, all of whom contribute to the unique characteristics of the state. • Colonization by several foreign powers starting from the early part of 16th century has seen Melaka gradually declining in importance to the region. This coupled with limited natural resources has slowed the economic growth of the state prior to the Malaysian independence. • Realizing its strengths and weaknesses, the state has managed to transform its economy focusing on development of two main sector i.e. manufacturing and tourism. The state started inviting over foreign investors in the early 70s and since then has met with commendable success. By end of 1997, the state had registered a total investment of over RM16 bil., creating over 80,000 job opportunities. • Today 30% of Melaka’s GDP is derived directly from its industry which is equally matched by its booming tourism sector. To ensure that Melaka’s growth remains strong and sustainable, Melaka needs to take the next step forward in it development, transforming its core economic sectors into high value and knowledge driven sectors. • As the country moves towards becoming a developed nation, knowledge was identified as the key impetus and the birth of the Multimedia Super Corridor in mid 1990s is a testimony of the drive in realizing the country’s Vision 2020. • In line with global developments and opportunities, it is now timely for Melaka to leverage on the advancement in ICT to further accelerate development across the state in line with its vision of becoming a developed state. ICT has a strong affinity with knowledge and Melaka can successfully launch high impact ICT initiatives that will propel the state to become a fully developed knowledgebased state by 2010. • This ICT Strategic Bluueprint contains the summary of recommendations and is a key segment of the state’s ICT Masterplan designed to expedite Melaka’s drive to be a “ Developed K-State by 2010”.
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1.1. What is a K-State?
• In essence, a K-State is about attaining the State’s mind shift to a culture in which the State’s priority is to invest in the minds of all its population to enable them to grow new emerging industries, transform existing industries and path the direction towards unimagined routes of discovery to promote better life for current and future generation. • A K-State is not just for scientists or technopreneurs or people working in “emerging” industries. It will improve opportunities and security for all people, whatever age, gender, and level of education by strengthening traditional industries, creating new jobs and helping people to be retrained and re-skilled. • In a K-State, the critical forces of political, economics, social and technologies weaves together in a common thread to form a partnership of three powerful sectors namely the public, private and community sectors in collaboration to create both K-Society and KEconomy

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1.2. Criteria of a K-State
Example of Criteria from The Heritage Foundation Knowledge Wheel (level of preparedness to embrace knowledge based economy):
Share of worldwide computers in use Business expenditure on R&D No. of computers per 1'000 people Patents granted to residents Share of total worldwide MIPS Total expenditure on R&D R&D personnel nationwide Scientists & Engineers in R&D Computer power per capita Connections to internet Investment in telecommunications

High-technology exports

Telephone lines

Tertiary education enrolment Secondary enrolment Secondary pupil-teacher ratio Primary pupil-teacher ratio Literacy

Cellular mobile telephones Television sets Radios Fax machines International call costs Newspaper circulation Malaysia United States

Total expenditure on education Source : Economy Report 2001

* This chart is also described in Chapter 5 of the Third Outline Perspective Plan

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1.3. What are the main thrusts of K-Economy and how is it different from old industrial economy? (1)
MARKETS Issue Key Economy Drivers Economy Economic Development Old Industrial Economy Large industrial firms Supplier Driven Steady & linear, predictable New Knowledge Economy Innovative entrepreneurial knowledge-based firms Customer Driven Volatile – fast change, with explosive upsurges and sudden downturns & chaotic – the direction of the economy’s changes not perfectly clear Fast & unpredictable Short Global hypercompetition Speed: Fast eats Slow Differentiation
Source : MSCTC Analysis, 2004

Market Changes Lifecycle of Products / Technologies Scope of Competition Competition Marketing

Slow & linear Long Local Size: Big eats Small Mass Marketing

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1.3. What are the main thrusts of K-Economy and how is it different from old industrial economy? (2)
ENTERPRISE Issue Pace of Business Emphasis On Business Development Approach Success Measure Organization of Production Key Drivers to Growth Key Sources of Innovation Old Industrial Economy Slow Stability Strategy pyramid: Vision, Mission, Goals, Action Plans Profit Mass production Capital Research New Knowledge Economy Faster with ever rising customer expectations Change Management Opportunity driven, dynamic strategy Market capitalization Flexible & lean production Resources: People, Knowledge, Capabilities Research, system innovation, knowledge mgmt, integration, new business creation, venture strategies, new business models ICT, e-business, computerized design & manufacturing
Source : MSCTC Analysis, 2004

Key Technology Drivers

Automation & mechanization

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1.3. What are the main thrusts of K-Economy and how is it different from old industrial economy? (3)
ENTERPRISE Issue Pace of Business Emphasis On Business Development Approach Innovation Processes Production Focus Strategic Alliances with Other Firms Organizational Structures Old Industrial Economy Slow Stability Strategy pyramid: Vision, Mission, Goals, Action Plans Periodic, linear Internal processes Rare, “go alone” mindset Hierarchical, bureaucratic, functional, pyramid New Knowledge Economy Faster with ever rising customer expectations Change Management Opportunity driven, dynamic strategy Continuous, systemic Entire value chain Teaming up to add complementary resources Interconnected subsystems, flexible, devolved, employee empowerment, flat or networked structure New, refocused on people, knowledge & coherence
Source : MSCTC Analysis, 2004

Business Model

Traditional, command & control

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1.3. What are the main thrusts of K-Economy and how is it different from old industrial economy? (4)
WORKFORCE Issue Leadership Work force characteristics Skills Education requirements Management employee relations Employment Employee seen as Old Industrial Economy Vertical Mainly male, high proportion of semi-skilled or unskilled Mono-skilled, standardized A skill or a degree Confrontation Stable Expense New Knowledge Economy Shared: employee empowerment & self leadership No gender bias; high proportion of graduates Multi-skilled, flexible Continuous learning Cooperation, teamwork Affected by market opportunity / risk factors Investment
Source : MSCTC Analysis, 2004

39

1.4. The K-Economy Transformation
There are wide industry and international boundaries, allowing Melaka’s research and industry to participate in the global research effort and gain implications -new better access to the global knowledge base. This demand new business models, new Research & collaborative arrangements and capabilities to manage research industry structures, new Development activities and IP, as well as national innovation policies that kinds of social interaction accommodate this mode of operation. Science & industry and new forms of development agencies are working to establish these new innovation regulatory arrangements. policies There is also a gap now A broad range of global content-based and export-oriented goods wide opened. Technology and services are developing, including interactive multimedia, digital film and TV, computer & online games, educational content and business Communications production, digital publishing and online music. However, the developments are pulling market for cultural content cannot develop ahead of broadband & Media ahead of industry rollout; yet at the same timed broadband development is hindered arrangements and by limited availability of content. Broadband and digital content government regulation policies are addressing this nexus that we inherited from Major ICT related innovations have included incorporation of 20th century. e.g. (computerised) numerical controllers into machines, robotics and Internet content local area (LAN) communication and control networks in factories. However, there are wide disparities in productivity growth rates of regulation, intellectual different manufacturing industries and it appears that less highManufacturing property protection, tech, capital intensive industries are recording lower productivity electronic privacy growth. It also found a strong correlation between domestioc ICT protection, critical inputs and productivity growth, suggesting that ICT was a central infrastructure security factor driving productivity growth and government service Shared ICT infrastructures will become the norm and agenices will delivery be able to aggregate the services offerings of other agencies to Government
provide packages “integrated services”. 40 R&D activities, enabled by ICT networks can now cross company,

1.5. The Challenges & Opportunities of K-Economy (1)
Melaka cannot afford to neglect the challenges of K-Economy transformation. Throughout history, major new technologies have led to predictable but far reaching cycles of change. The ICT cycles has begun, but the change we have seen is merely the beginning. Successful adjustments to the technology will create a platform for long-term competitiveness, renewal of regional communities and stronger social cohesion Whether we want or not, there is no choice but to continue to adapt. The challenge is to ensure Melaka’s response is strategic, coherent & effective and in developing the new “ways of working” to realise the full potential. The opportunities lie in applying information, knowledge & skills to improve Melaka’s economy and society and strengthen its competitiveness These calls for collaboration between the public sector, the private sector and community to create the conditions for a successful KEconomy
Growing dependence on SHARING knowledge & information BTW INDIVIDUALS, COMMUNITIES & ORGANISATIONS to coordinate economic & social relationships Institutionalization of CONTINUOUS INNOVATION, PRODUCTIVITY IMPROVEMENT & EDUCATION/SKILLS FORMATION OPENNESS to the golabl economy through TRADE, INVESTMENT & EXCHANGES of INFORMATION, KNOWLEDGE & SKILLS

FEATURES OF SUCCESSFUL K-ECONOMIES

MELAKA NEEDS TO RESPOND

GLOBAL DEVELOPMENTS
The information & knowledge intensive activities are themselved being REPETEADLY TRANSFORMED BY NEW Information and communications TECHNOLOGIES which keep emerging all the time

The importance of INFORMATION, KNOWLEDGE, SKILLS & COMMUNICATION in both economic & social activities will continue to grow

Source : MSCTC Analysis, 2004

41

1.5. The Challenges & Opportunities of K-Economy (2)
These technologies will do more than make business and personal communications more efficient. They allow business and consumers to bring together “integrated” information, transactions and services that will cut complexity and cost out of whole sectors of economy. This can only happen when business & government agencies, ICT users & developers learn how to work together to provide a seamless service to customers and citizens The combination of technology change, falling prices and renewed cost-consciousness is difficult for the ICT production sector. These factors suggest that it is unlikely that the industry will return to the high rates of industry growth as seen in 1990s. However, they also offer new opportunities and new markets and the industry continues to have a bright future.
Technology Dimension of ICT Products & Services

Source : MSCTC Analysis, 2004

ICT customers need an adaptable, innovative ICT sector to advise on, to create, to build and implement new ICT. There is no dichotomy between production and use of ICT. Both are needed in a successful K-Economy.
42

1.5. The Challenges & Opportunities of K-Economy (3)
ICT & K-Economy. Why ICT have remarkable impact? 1. ICT has a strong affinity with information and knowledge. In an economy where knowledge, information and communications are central, a technology that significantly reduces the cost of storing, processing and communication info is bound to have a strong impact. The internet has magnified this impact by providing an international “information infrastructure”. The telecommunications network, originally for voice communications, now supports a much wider range of communications, including audio, video, data & financial transactions 2. Price (cost) of ICT continues to fall, making an ever-widening range of applications commercially possible. At the same time, cost of building network infra is falling faster than the cost of either computing or data storage facilities. It is increasingly cost-effective to connect to other people’s ICT than to own and operate an internal ICT system. Innovative apps of these new technologies in previously unrelated areas is also transforming the nature of products and services themselves, as well as how they are developed in non-ICT sectors of the economy 3. New ICT is emerging all the time, triggering new waves of innovation that drive long term growth.
New Emerging ICT

Knowledge

ICT

Information

Falling prices
Source : MSCTC Analysis, 2004

43

1.6. What will Melaka as a K-State entail?
Provides its entire citizen with the opportunities to improve their skills and secure and high value jobs though properly funded lifelong learning and vocational education programs; Makes every school a centre of excellence and provides all children with quality education; Has universities that attract world’s leading researchers and teachers, and Encourage fundamental research and the study of State’s advantages (e.g Biodiversities) as well as applied knowledge (that takes the research to market) in key niche areas. Creates and promotes effective linkages between research and organizations (adequate state database, inventory of skills, resources and environment or generally referred to as the “cadastre”) and enable effective coordination to take advantage of the available opportunities and mitigate foreseeable threats; Works imaginatively and creatively as catalyst, encourager, information provider, infrastructure supplier, major customer and example of “best practice”; and Promotes a strategy of ensuring investment in “key niche areas” where it can establish a leadership or global position.

Government

Education System

Economic System

Community

Transformed culture that emphasizes knowledge, excellence and innovation and aims for it to be in its international reputation e.g. countries like Finland and Ireland or states like Victoria and Bangalore whereby “image” is being transformed by creating an inventory of internationally recognized goods and services; Uses knowledge resources to promote public goods, encourage access and equality, provide resources and opportunities for the rural and overcome social, class, ethnic and gender barriers; Creates a more challenging and creative environment that help reverse the “brain drain” and assist in importing the needed skills Strengthen great heritages such as customs, museums, arts, historical sites.

Based on innovation and creation or commercialization of ideas and that reverses serious imbalances in trade through high value added good and services Supports the provision of leading edge telecommunications, transport and primary infrastructures throughout the state and application of knowledge to simultaneously to promote energy efficiency, higher living standards and creation of jobs.

44

Melaka ICT Strategic Blueprint

2.0. CURRENT STATE ANALYSIS

2.

Current State Analysis

High Readiness: • Ready infrastructure – satisfactory internet/access points • Initiated a reasonable number of good programs & community involvements • High internet penetration • High ICT literacy • High PC penetration
Comprises: • • • Students, Working Population, Housewives & Retirees Rural & Urban Young & Old

Low Readiness: • Most businesses not ICT enabled • Mainly internal process driven
COMMUNITY SECTOR PRIVATE SECTOR

• No real collaboration/sharing

Comprises:

PUBLIC SECTOR

• •

Manufacturing Services

Medium Readiness:
Comprises: • • • State Govt Admin Office District & Land Offices District Local Councils

• Growing investment in ICT • Good back end systems / connectivity • Projects not integrated (Pockets of initiatives)
46

2.1. Melaka’s economy progressing strongly
• • Melaka’s economy is coursing through strongly Melaka’s GDP per capita is the 4th strongest in Malaysia after WP, Selangor & Penang

Real Income Per Capita (Malaysia & Melaka)
40000 35000 RM (Current Price) 30000 25000 20000 15000 10000 5000 0 2000 2005 2010 Year 2015 2020

38000 32000 26000 38000

30805

17556 15244 16870 14582

23610

Melaka

Malaysia

Source: 8MP, OPP3 & MSCTC Analysis Note: Real Income Per Capita (Current Year)

Population – 0.7 mil Size – 1,650 km2 GDP – RM12.2 bil (2004) GDP growth – 7.4% (2003-2004) Per Capita – RM17,556 (2004)

47

2.2. Tourism and Manufacturing driving Melaka’s GDP

Construction 2.8% Agriculture 3.9% Mining 0.1%

GDP equivalent to 3% of Malaysian economy GDP growth faster than Malaysian economy GDP per Capita higher than national average Tertiary sector is the biggest sector & driver of growth. 65% of Melaka’s GDP contributed by the services sector growing at approximately 10% per annum from 2002 to 2004

Other Services 37% 4% 3%

28%

65%

•Private health services is thriving in Melaka. Indonesian patients visit Melaka’s private hospitals due to its cost competitiveness. Doctor to patient ratio is one of the highest in the nation
Tourism 28%

•28% of Melaka
economy is derived from tourism

•1 in every 4 of tourists
Manufacturing 28% to Malaysia visits Melaka.

•Manufacturing contributes 28% of the
economy.

48

2.3. Public Sector embracing ICT
Melaka Cybercentre will support Melaka’s developed state mission by 2010, K-State development and overall MSC’s agenda 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Initiating Phase

Visioning Phase

Implementing Phase
Melaka State Vision Developed State 2010

• K-Economy • E-Melaka • Basic Data division & initiatives 2004 published incubator set launched • 14,552 up • Comprise of 12 housewives & • 9a sector “e” initiatives: pensioners tourism trained • e-Govt development • e-Community strategy • e-Education identified • e-Tourism • Melaka • e-Commerce Broadband Plan • e-Politic unveiled • e-Youth • Melaka ICT • e-Health Blueprint study • e-Mosque commissioned • e-Security • e-Media • Melaka MSC • e-Women Cybercentre submission

• Target Developed State status • RM26,000 GDP per capitab
Indicator

Main Projects

Strategy Balanced Development

23 Indicators

Biotechnology ICT Manufacturing Tourism Agriculture Human Capital Development Physical / Spiritual Fardu Ain / Fardu Kifayah Economy / Humanity Urban / Rural Between Races

a Currently, b

12 tourism sectors identified 1990 prices – Source: Melaka Basic Data 2004

49

2.4. Public Sector, Educational Institutions and Private Sector are gearing up to embrace Knowledge and ICT aggressively
95% of public servants in Melaka are equipped with PC & email access All 3 Pihak Berkuasa Tempatan - MBMB, MDJ and MPAG have web presence to educate the public on its roles and plans Melaka State Investment Centre (MSIC) was created to play the role as integrated investment promoter in ICT related fields IHLs in the State offers second highest ICT related courses per student population in Malaysia and produces highest population ratio with tertiary education after Klang Valley & Penang Multimedia University (MMU) actively promoting ICT education in the State Syarikat Pemasaran Melaka was created to buy, package and market quality products K-Economy Incubator set up to facilitate the development of Melaka as a centre for service industries, R&D&D 174 mosques connected through the e-Mosque network 45 cybercafes (31 in Central Melaka)
50

2.5. Public, Private and Community participation is prevalent across the state
One Village One Product
Rembia (Handicraft) Duyong Kuih Cakar Ayam) Alai (Inang Inang) Serkam (Prawn/Seafood) Ayer Panas (Kelapa Mawar)

Paya Rumput (Melaka Delite)

Bukit Sedanan (Taufu) Kuala Linggi (Gula Melaka)

Ramuan China (Quail) Bukit Asahan (Pamelo) Mashid Tanah (Spices) Durian Tunggal (Dodol) Ayer Keroh (Crystal)

Ayer Molek (Durian)

Sg Rambai (Duku)

51

2.6. Telecommunication penetration – one of the highest in Malaysia
Melaka’s telecommunication penetration is among the highest in Malaysia after Klang Valley and Penang.
Internet Dial-up Penetration (%), 2004 PC per Household (%), 2000 Cellular Penetration (%), 2004

MSIA WP LABUAN WP KL T'GGANU S'GOR S'WAK SABAH P. PINANG PERLIS PERAK PAHANG NEGERI 9 MELAKA K'TAN KEDAH JOHOR

0

10

20

0

5 30

10

15 40

20

25 0 50

10

20

Sources: MCMC, 2004; DoS 2002 52

30

40

50

60

70

80

2.7. State Government eager to adopt and embrace ICT

JOHOR

K'TAN

NEGERI 9

PERAK

P. PINANG

S'WAK

T'GGANU

KEDAH

MELAKA

PAHANG

PERLIS

SABAH

S'GOR

WP KL

INDICATOR YEAR (SOURCE)

Identification of location(s) within the state for nucleus ICT development - MSC Macro Study, 2005 % of government staff with PCs - MSC Macro Study, 2005 * Data not available

Y

Y

Y

Y

Y

Y

Y

N

Y

Y

Y

Y

Y

Y

58

70

20

95

*

*

49

25

90

23

100

*

35

*

• The State Government of Melaka with its dynamic and visionary leadership has increased utilization of technology in its daily work process to increase productivity and effectiveness of Government machineries

53

2.8. State Government driving towards 2010
Melaka has outlined major projects for the Ninth Malaysia Plan (2006 – 2010).
NO 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. PROJECT / PROGRAM UPGRADING OF BATU BERENDAM AIRPORT - (S) RESEARCH AND DEVELOPMENT OF MELAKA BIOTECHNOLOGY SPORTS COMPLEX (STADIUM) BUILDING “UNIVERSITI PERGURUAN PEREMPUAN MELAYU MELAKA” AT RIM JASIN BUILDING “UNIVERSITI KESENIAN, KEBUDAYAAN DAN WARISAN” AT BEMBAN JASIN BEAUTIFICATION PROJECT SG. MELAKA PHASE 3 WATER PLANT LANCANG PHASE III JERNEH DAM, LUBOK CHINA CIQ MELAKA RIVER (PASSENGER JETTY) – (S) TRAIN TRACK (FROM TAMPIN TO MELAKA CITY) TAPAK PELUPUSAN SISA PEPEJAL ‘SANITARY LANDFILL’ NEW HOSPITAL FOR ALOR GAJAH DISTRICT UPGRADING JALAN INDUSTRI MELAKA STATE UPGRADING AND REPAIRING JALAN MUAR – MELAKA – ALOR GAJAH – SIMPANG AMPAT ENTRANCE TO KOLEJ UNIVERSITI TEKNIKAL KEBANGSAAN MALAYSIA (KUTKM) – (S) TOURIST ROUTE FOR THE WHOLE OF MELAKA STATE BUDGET (RM’000) 37,000 112,500 138,000 500,000 700,000 187,786 240,000 100,000 4,500 256,000 87,765 70,000 300,000 178,000 23,000 600,000

• More than one-fifth of its RMK9 budget for mega-projects will be focusing on building its bullish tourism sector • 35% of its RMK9 budget for mega-projects will be directly focusing on building its education sector • More than RM100 million has been identified to fuel the growth of Melaka’s Biotechnology sector • Approximately RM500 million has been identified for ICT development

54

2.9. Melaka – desirable business environment
• Among the lowest SAIDI Index for electricity in Malaysia which shows strong stability in power supply • Melaka offers higher quality of life compared to the Malaysian average
INDICATORS • SAIDI Index (projected) • No of hospital bed per 100,000 population • Population per doctor • Population per dentist • No of post offices per 100,000 population • Road Development Index • Fixed telephone line per 1,000 population • Air Quality Index • Crime per 1,000 population YEAR 2004 2003 2003 2003 2002 2004 2004 2004 2004 MALAYSIA 111.4 177.6 1,377 10,399 2.5 0.22 189.5 40 6.1 MELAKA 74.2 220.5 1,138 7,898 3.4 1.09 209.7 49 4.6
55

Melaka ICT Strategic Blueprint

3.0. ISSUES AND CHALLENGES

3.1. Manufacturing sector growth not impressive of late (1)
State GDP (RM Billions) 5

4

3

2

1

0
Agriculture Manufacturing
2002 2003

Services
2004

Others

Economic Sector

Source: Data Asas (UPEN), 2004

• Growth of the manufacturing sector in the State has flatten over recent years • Most of the existing large investments in manufacturing are based on foreign intellectual property which translates to lower value add to the local economy
57

3.1. Manufacturing sector growth not impressive of late (2)
Net FDI Inflow (USD Billions) 60.0
50.0 40.0 30.0 20.0 10.0 0.0 1990 -10.0 China India Malaysia Singapore
Source: Database of UNCTD, 2005

1995

2000

2001

2002

2003

• Growth of FDI Inflow to Malaysia fueled by the manufacturing shown signs of weakening • Recent development has seen China as world largest FDI recipient (specifically in manufacturing and E&E) due to its significant cost advantages • Malaysia will find it difficult to attract new sizeable investments in manufacturing and will need to move to higher value add activities to maintain growth
58

3.2. Tourism Sector yet to fully leverage on ICT potential
The Tourism Industry in Melaka is one of the largest contributor to the state GDP (28% of GDP - RM3.4 bil) – Malaysia’s Tourism revenue stands at RM29.7 billion in 2004 4 mil tourists visits Melaka annually (i.e. 1 in 4 tourists to Malaysia) - 75% of tourists are domestic travelers - Significant number of tourists are day-travelers which resulted in Melaka inability to secure tourism revenues proportionate to the number of tourist arrivals (potential: RM7.4 billion) Malaysian suppliers generally slow to exploit potential of E-Commerce. Static web presence widespread, but limited in content. Little “E-Enablement” or integration into operational systems. On-line products are generally point-to-point air tickets, hotel rooms only booking etc. In Canada, online booking represent one-third of all travel spending while 60% of travelers uses internet for pre-travel research (Malaysia: 14.7%) - Currently, many tourist information websites are available on Melaka but none of these websites posses e-commerce transaction capabilities and are mostly non-interactive types. (PhocusWright, 2002) Tourists from North America and Europe recorded high online travel bookings (>60% of world online travel), an are where Melaka Tourism Sector should exploit Higher foreign travelers, higher average length of stay and higher tourist spending is possible if the state’s Tourism Sector leverages on the power of ICT
59

3.3. Health tourism growing and showing potential

The Health Tourism Industry in Melaka has been consistently registering an average of 3000 foreign patients per month, most of whom are from Indonesia, through campaigns and promotions done by the private hospitals. Melaka’s close proximity to Sumatera makes her an attractive and much cheaper alternative for medical treatment than Singapore and to some extent, even Jakarta. The growing health tourism is in-line with the Federal Government’s initiative to develop Malaysia’s health tourism. There is room for collective campaigns among the private hospitals so that the services offered are better reflected and promoted through the use of ICT such as improvements in the pre and post hospitalization services such as: from flight booking facilities to accommodation to proposed recuperation activities for patients to relaxation with family at spa resorts.

60

3.4. Education tourism growing and showing potential

Education tourism in Melaka is growing and has not been maximised yet. The registered number of foreign students in Melaka for 2004 is at 30,667 and growing. Most students come from ASEAN and some from the Middle-East and China. To further promote education tourism, Melaka could get accreditation of local IPTS from other countries. This will allow students to take certain courses or semesters in Melaka, which will be accepted and credited by their IPTS in their own countries. Students will then be able to tour Malaysia. The use ICT can create more awareness among the ICT-savvy students around the region of Melaka’s untapped potential.

61

3.5. New Growth Sector: ICT – A Powerful Enabler of the New Economy
… For the purpose of development goals for a nation, ICT can be a powerful enabler…
Power to store, retrieve, sort, filter, distribute and share information = efficiency gains in production, distribution and markets. Supply and production chains streamlined = leaner & > effective business processes and transactions Leads to new products, services and distribution channels within traditional industries + innovative business models and whole new industries. Barriers to entry , competition

Applicable to all, personal, business and government • Multifunctional & flexible • Developed to meet diverse needs
Pervasive & Cross Cutting
sn sin Di tes on ita i it tio cil i t dia F Fa ed erm ter

…because its unique characteristics dramatically improve communication and the exchange of information to strengthen and create new economic and social networks. Users can acquire from original provider hence reducing need for intermediaries. A considerable source of efficiency as allows for specific needs or preferences to be served

ab les Eff ici Ga en ins cy

ICT Characteristics

Allows for zero or declining marginal costs. Replication of content is virtually free regardless of its volume, and marginal costs for distribution and communication are near zero. ICT can radically reduce transaction costs.

En

Gl ob al &N Cr ea et tio n E work na ble r

a ru irtu &V al al e e git tur Di Di Na I In l

Disseminates Information & Knowledge

Through expansion of networks, ICT can transcend cultural and linguistic barriers anywhere, anytime Users with access can benefit from exponentially increasing returns as usage increases

Separates content from physical location Flow of information impervious to geographic boundaries, remote communities become integrated and information, knowledge and culture accessible to anyone

Source: UNDP

62

3.5.1

ICT Value Added - Malaysia
12000.0

ICT Service Value Added (RM’ Mil)
4018.9

10000.0 1271.7 8000.0 RM Million 378.3 6000.0 Mobile Value Added 218.3 708.1 2269.6

3014.7

4000.0

2000.0

0.0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Mobile 2001

Computer & Related Activities

Fixed/Other Telecommunications

1991 Value Added (RM’ Mil) As a% of GDP (%) 3.225 2.8

1992 3.641 2.9

1993 3.958 2.8

1994 4.883 3.2

1995 5.510 3.3

1996 6.169 3.4

1997 7.354 3.7

1998 8.275 4.5

1999 8.032 4.2

2000 9.161 4.4

2001 10.05 4.8

Note: Does not include Wholesale, Retail and Rental of ICT products Source: MSCTC Analysis

63

3.5.2. Indicators - Malaysia
‘000 Population Households Main Telephone Lines • per 100 inhabitants • per 100 households Mobile cellular subscribers • per 100 inhabitants Personal computers • per 100 inhabitants Internet subscribers • per 100 inhabitants Estimated Internet users • per 100 inhabitants Estimated TV households • % households with TV Satellite Dishes • as a % of TV households 1990 18,102 3,771 1,819 10.0 37.9 (92) 13 0.7 (91) 410 (92) 2.2 n/a n/a 1995 20,689 4,310 3,340 16.1 55.9 873 4.2 750 3.6 18 0.1 30 0.1 n/a n/a 29.4 (96) 6.8% 2000 23,490 4,911 4,754 22.0 66.4 5,122 21.8 2,200 9.91 1,659 7.1 4,977 21.5 4,000 81% 561 13% 2003e 25,021 5,389 4,670 18.7 61.7 11,424 45.7 3,500 14.0 2,600 10.4 7,800 31.2 n/a n/a 1,001 18.6%
Source: DOSM, ITU

64

3.6. New growth sector - biotechnology and bioinformatics

The biotechnology industry is currently one of the highest growing industry in the world (valued at USD700 billion in 2004 with an annual turnover of USD75 billion). It is estimated that by 2030 biotechnology and life sciences will be the leading industry globally and will continue to lead for a century to come. Malaysian herbal market alone is valued at RM2 billion with 90% products imported from overseas – local market is expected to surpass RM13 billion by 2020. The World Bank projects that the global biotechnology industry to grow between 12% to 17% p.a. until 2008 and will continue to grow at a healthy rate of 8% p.a. in the following years Biotechnology has been identified by the Federal Government as a key and necessary driver of economic growth in achieving developed nation status and Vision 2020. In its effort to achieve developed state status and consistent with the efforts of the Federal Government, Melaka should ensure that it leverages of the economic drive offered by biotechnology and bioinformatics.

65

Melaka ICT Strategic Blueprint

4.0. SETTING THE DIRECTION

4.1. SETTING THE DIRECTION: ICT Development taking centre stage
In Asia Pacific, various countries are adopting different growth models to suit specific national development plans
ICT development zones

Malaysia Hong Kong

Investment focus

Singapore Japan
Advanced networks

Korea

Australia India China
Instrumental

Basic Access

Philippines
Facilitating Substantial

Government involvement
Source: Singapore IT Federation, February 2002

Size of National ICT Spending

67

4.1.1. ICT Initiatives – focus of new economic strategy
Globally, ICT initiatives are becoming a vital enabler to economic development, taking shape in almost every country
United Kingdom
• • • • Modernising Government E-envoy UK Online Government portal Accelerated timescale for eGovernment

Finland
• World leader in mobiles (WAP, 3G, handsets) • World leader in mobile applications • eCitizen initiative

Mainland China
• Large market and customer base • Entry into the WTO • Access to large IT workforce

Japan
• Mobile commerce leadership (i-mode, 3G etc) • Vision 21 for info communications

Canada
• Mature eGovernment environment • Smart Communities • Low internet charges

Hong Kong
• Digital 21 • Invest Hong Kong • Deregulated telecommunications • Promotion of B2B exchanges

Singapore United States
• New federal government portal • Silicon Valley • Thought leadership, new business models and exchanges • • • • Singapore One IT2000 InfoComm21 S$1.5 billion on eGovernment • Accelerated deregulation of telecom sector

Israel
• Leader in Internet security • Reform of domestic telecom market. Mid 2000

India
• High volume of IT prof. • Rapidly upgrading infrastructure and regulations.

Australia
• Strategic Framework for Information Economy • Access to skilled labour • Sydney 2020 vision • Corprocure B2B exchange

Source: MSCTC Analysis, 2004

68

4.1.2. ICT includes both manufacturing & services
ICT sector is defined as “ a combination of manufacturing and services industries that capture, transmit and display data and information electronically” (ISIC rev 3/OECD)
Manufacturing classes
Office, Accounting & Computing machinery Television and radio transmitters and apparatus for line telephony and line telegraphy Instruments and appliances for measuring, checking, testing, navigating and other purposes, except industrial process equipment

Services classes
Wholesale of machinery, equipment and supplies

Insulated Wire & Cable Electronic Valves & Tubes and other Electronic components Television and radio receivers, sound or video recording or reproducing apparatus and associated goods

Rental of office machinery & equipment (including computers)

Industrial process equipment

Telecommunications

Computer & Related Activities
Source : The OECD Definition of the ICT Sector, Measuring the Information Economy 2002, OECD

69

4.1.3. ICT as a Sector - Services
Malaysia adopts ISIC rev 3 definition of ICT which conforms to OECD countries definition The following diagram shows the relevant economic activities which make up the ICT services subsector in the Malaysian context. A more detailed explanation of the activities are attached in appendix section.

ICT Services
Computer & Related Activities

Wholesale of machinery, equipment and supplies

Rental of office machinery & equipment (including computers)

Telecommunications

Wholesale of machinery, equipment & supplies

Rental of office machinery& equipment (including computers)

Telephone services (public & mobile) Television & radio transmission services Other telecommunications services n.e.c

Data communication service (including network operations) Paging service

Hardware Consultancy Software Consultancy & Supply Data Processing Services

Database Activities Maintenance & Repair of Office, Accounting & Computing Machinery Other Computer Related Activities

Under Category Wholesale and Retail Trade

Under Category Real Estate, Renting and Business Activities

Source: Malaysia Standard Industrial Classification 2000

* In most cases, ICT services, such as telecommunication and computer related activities, constitute between 70% and 90% of total ICT sector value added.

70

4.1.4. ICT Value Added - Malaysia
12000.0

ICT Service Value Added (RM’ Mil)
4018.9

10000.0 3014.7 1271.7 8000.0 RM Million 378.3 6000.0 218.3 708.1 2269.6

4000.0

2000.0

0.0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Computer & Related Activities

Fixed/Other Telecommunications

Mobile

1991
Value Added (RM’ Mil) As a% of GDP (%)

1992 3.641 2.9

1993 3.958 2.8

1994 4.883 3.2

1995 5.510 3.3

1996 6.169 3.4

1997 7.354 3.7

1998 8.275 4.5

1999 8.032 4.2

2000 9.161 4.4

2001 10.05 4.8

3.225 2.8

Note: Does not include Wholesale, Retail and Rental of ICT products Source: MSCTC Analysis

71

4.2.

Other Local ICT Initiatives

Population – 0.7 mil Size – 1,650 km2 Density Ratio – 363.64 per km2 GDP – RM10 bil GDP growth – 6.5% (2003) Per Capita – RM17,000 (USD4,474) Population – 4.6 mil Size – 7,962 km2 Density Ratio – 565 per km2 GDP – RM 228 bil (2004)*** GDP growth – 6.2% (2004)*** Per Capita – RM48,900(2004)***

PENANG

MELAKA

Population – 1.4 mil Size – 1,031 km2 Density Ratio – 1373 per km2 GDP – RM18.2 bil (2003) GDP growth – 6.9% Per Capita – RM20,034**

SELANGOR

72

4.2.1. Strategic Framework of Penang ICT Blueprint
Vision: Penang will be a world-class competitive k-economy and a pervasive k-society through knowledge enrichment and ICT excellence within the context of Vision 2020
8 STRATEGIC GOALS
Ensuring equitable and affordable access to information and knowledge Producing a critical mass of quality knowledge workers Creating the learning economy and organizations Promoting the widespread adoption of e-business Moving up manufacturing value chain towards more knowledge intensive preproduction and postproduction processes E-enabling the government machinery for efficiency, effectiveness and positive customer experience Eliminating the knowledge and digital divide to attain social sustainability Promoting local content development

5 INITIATIVES / THRUSTS
K-Worker Development Connectivity E-Economy Digital Equity Electronic Good Governance

Penang K-ICT Blueprint is formulated to provide a roadmap for the development of k-economy to support the goal of a fully developed state by 2010 as enunciated in Second Penang Strategic Development Plan

73

4.2.2. Lessons Learnt in Penang K-ICT Blueprint

Organisation Government
• Penang K-ICT Council identified 8 strategic goals.

Programs
• • Penang K-ICT Blueprint Strategic K-Economy Initiatives on:

Actual Benefits
• Telephone density of 26 subscribers per 100 population (Nov ‘03) well ahead of national rate of 14 subscribers per 100 population. 3rd highest rate of mobile phone users, PC ownership, Internet connection in households. ICT infrastructure is better than most SEA (except Spore).

Lessons Learnt
• Must create conducive conditions for the marketplace (enterprise & entrepreneurship) to lead. Publicize a clear vision and direction for KEconomy. Better incentives to attract investments in knowledge-intensive sectors i.e. assessment rates and price of land for R&D. Mindset change to appreciate education as the springboard for developing K-Economy.

K-Worker Development. Connectivity. E-Economy. Digital Equity. Electronic Good Governance.

• •

74

Vision: Selangor to be a fully Developed and Industrial state by 2005

Encourage/promote growth of small & medium scale industries/supporting industries in rural areas Provide more low & middle cost house Widen/increase number of middle-class Bumiputra entrepreneurs (entrepreneur development program)

4.2.3. Strategic Framework of Selangor Maju

Redefine/reorganize local councils (environment, income & expenditure) Create pool of skilled & technology literate labor force

Integrated & comprehensive education program Balance of development & growth in housing, forestry, industry & agriculture Support MSC, Putrajaya & Cyberjaya

Educated

Efficient

Effective

Curb & eradicate social problems

5 INITIATIVES / THRUSTS

10 STRATEGIC GOALS

E-Government

Environment

Modernize/diversify agriculture sectors (outskirts & farms) to increase productivity (esp. food & livestock production)

75

4.2.4 Lessons Learnt in Selangor ICT initiatives
Organisation Government
• Federal Government, Multimedia Super Corridor, Cyberjaya, Putrajaya

Programs
• MSC Flagships: Smart School, MyKad, Telehealth, EGovernment

Actual Benefits
• Spill over from the federal initiative most of the flagship pilot project are in Selangor Create IT industry within Selangor (MSC) Improve service delivery for the private sector Create employment opportunities for IT Industry

Lessons Learnt
• • Need a strong champion to lead Concerted effort from relevant agencies for sustainable development

• • •

76

4.3. Selective International ICT Initiatives

Population - 4.9 mil (70% in Melbourne) Size – 227,416 km2
ONTARIO

Population – 4.0 mil (75% in Republic) Size – 70,280 km2 Density Ratio – 78.26 per km2 GDP – USD768 bil (RM677 bil) GDP growth – 9% Per Capita – USD31,041

Density Ratio – 21.55 per GDP growth – 2.6% Per Capita – USD26,974

km2

GDP – USD133 bil (RM505 bil)

Ottawa

Belfast

Population - 12.0 mil Size – 1,077,011 km2 GDP – USD326 bil (RM1,234 bil) GDP growth – 1.3% Per Capita – USD24,774

Dublin Toronto VICTORIA Melbourne IRELAND

Density Ratio – 11.14 per km2

Note: Maps are all not to scale

77

4.3.1. Ireland – ICT as a Sector
Vision: Ireland to be a world leader in ICT by 2005
Strategic Direction 1 Strategic Enabler 1 R&D Strategic Enabler 2 Education Strategic Enabler 3 Infrastructure Move up Strategic Enabler 4 technology Fiscal Policies & Incentives value chain Strategic Enabler 5 Entrepreneurship Strategic Enabler 6 Market relationships Strategic Enabler 7 Intelligence gathering Achieve Centre of Excellence status Develop expanded, educated and responsive skills base Strategic Direction 2 Strategic Direction 3 Strategic Direction 4 Strategic Direction 5

Attract new capital intensive investment

Encourage indigenous ICT sector

78

4.3.1.

Ireland – Focus, Sample Programs & Sample Results

Key Focus Ireland Research & Development

Sample Programs Promote liaisons between government agencies, universities, multi-national & indigenous sectors; Enhanced venture capital environment. Increase students in technology subjects in primary, secondary & tertiary levels; Upskill people in workplaces; Increase home access to technology. Upgrade/Improve key road & air access; Develop regional airport hub. Introduce targeted tax relief for industry to engage in R&D; Amend legislation on stock options to allow a greater number of ICT companies to qualify. Encourage ICT start-ups & entrepreneurship; Package financial incentives. Develop marketing package with IDA Ireland. Develop a statistical profile of the ICT sector

Sample Results ICT sector employs 90,700 people in over 1,300 companies up in 2003 (19,000 in 1990). Over 300 overseas companies in the ICT sector have a presence in Ireland. Indigenous software sector employs 18,000 people (3000 in 1992). Ireland is the largest exporter of software in the world. One third of all PC's sold in Europe are manufactured in Ireland. Turnover in the ICT sector was over €51 billion in 200. Total exports of ICT products and services amounted to almost €30 billion in 2002 (34% of all exports). In 2002, thirty-two IDA-backed ICT firms invested €120 million in R&D.

Education

Infrastructure Taxation

Entrepreneurship

Market relationships Intelligence gathering

79

4.3.1. Lessons Learnt in Ireland ICT initiatives
Organisation Government
• Enterprise Ireland

Programs
• Focuses on 3 key areas: Technology innovation Internationalisation Business development

Actual Benefits
• Significant businesses are emerging from Irish university campuses. Partnered leading Irish companies to develop from high growth start-up to respected international players.

Lessons Learnt
• Need to create a vibrant enterprise culture.

Association

ICT Ireland (collaboration of assoc.)

Identified 7 key areas: R&D Education Infrastructure Taxation Entrepreneurship Market relationships ICT sector profiling

ICT sector have moved up the technology value chain. Ireland have an expanded, educated and responsive skills base. Ireland have attracted significant additional inward investment.

Need to respond with speed, decisiveness and innovation to the constantly changing demands of the global marketplace.

80

4.3.2. Victoria (ICT as Enabler & Sector)
Vision: To be a Globally Recognised ICT hotspot by 2010
Strategic Direction 1 Strategic Enabler 1 Governance Strategic Enabler 2 Infrastructure Strategic Enabler 3 Skills Strategic Enabler 4 R&D Building a learning society Growing industries of future Boosting ECommerce
Connecting communities Improving infrastructure & access

Strategic Direction 2

Strategic Direction 3

Strategic Direction 4

Strategic Direction 5

Strategic Direction 6

Promoting new style of Government

81

4.3.2. Victoria – Focus, Sample Programs & Sample Results
Key Focus Victoria Building a learning society Growing industries of future Sample Programs E-Education. ICT Industry and Key Industry Symposium. Tourism Online to boost Victoria tourism offerings online. Bioinformatics Consortium to create an emerging industry to grow. Technology Demonstration Projects. E-Commerce Exhibition Projects Program (ECEPP) to develop E-Business Clusters. E-Commerce Info Centre to establish a onestop-shop for E-Commerce. Connecting Communities 2001. Regional Connections 2002. Sample Results Student: computer ratio improved from 1:5 to 1:3.9. ICT investments worth RM1.8 bil & 5000 new jobs created within 4 years.

Boosting ECommerce

More than 1000 companies listed on VicIT. 39 councils shared RM4.7 mil to implement 26 e-commerce projects. More than 10,000 public internet access terminals established. Over 700,000 people connected to VicOne network through 3500 sites. Over 450 Government services can be accessed online through Multiservice Express.

Connecting communities Improving infrastructure & access Promoting new style of Government

Electronic Commerce For Procurement (EC4P) for Government procurement.

82

4.3.2. Lessons Learnt in Victoria ICT initiatives (1)

Organisation Government
• Ministry for State and Regional Development

Programs
• Connecting Victoria

Actual Benefits
• A complete master plan to boost ICT development in Victoria. A common focus for all pubic and private sector entities. A wholistic and standardised framework for Victoria Education system. Increased skills development among Victorians.

Lessons Learnt
• • Public and Private Sectors needs to be coherent in directions and objectives. Full commitment by all stakeholders is essential.

Ministry for Education and Training

Knowledge and skills for the innovation economy

• • •

Standardised curriculum is essential for ICT development. Education plans and frameworks needed to sustain ICT development Stakeholders buy- in is crucial. Common platforms needed for Businesses to interact with each other. Associations play a key role in promoting ICT usage and adoption.

Associations

Australian Information Industry Association

Victoria ICT Symposium

• •

A knowledge sharing platform to boost ICT development. A networking platform for businesses to interact and create partnerships.

• •

83

4.3.2. Lessons Learnt in Victoria ICT initiatives (2)
Organisation Private
• Australian Automotive Manufacturers

Programs
• Australian Automotive Network Exchange.

Actual Benefits
• Automating workflows so allowing for increased process efficiencies. Increased business opportunities for Australian Auto parts suppliers and manufacturers.

Lessons Learnt
• Private sector’s active participation is crucial. Business case needed to kickstart and sustain initiatives.

AJB Publishing

Information Technology and Telecommunications Awards

Encouraged development and growth of the ICT sector.

Recognition and incentives needed to boost ICT development momentum. Platforms are needed for Businesses to showcase skills and capabilities.

84

4.3.3. Ontario (ICT as an enabler)

Vision: Information and information technology (I&IT) to advance government’s business vision
Strategic Direction 1 Strategic Enabler 1 Infostructure Strategic Enabler 2 Infrastructure Strategic Enabler 3 Incentives & Policies Transforming government administration Promoting Lifelong Learning Culture Developing a consumercentered model for healthcare Strategic Direction 2 Strategic Direction 3

85

4.3.3. Lessons Learnt in Ontario, Canada ICT initiatives
Organization Government
• Department of Education

Programs
• Ontario Knowledge Network for Learning

Actual Benefits
• ICT is integrated into the learning environment which enable learners and teachers to have interactive learning experience The establishment of satellite Communications for remote schools that ensures equitable access for learning programs throughout the province

Lessons Learnt
• Education is key in bridging digital divide

Telehealth Ontario

More than 43% of the callers do not have to visit doctor or emergency rooms for health advice

Need to secure user and stakeholder buyin. Processes and service delivery needs to be structured and standardized.

86

4.3.4.

Key Lessons Learnt
PENANG

State must have the following critical success factors:
• A clear agenda on ICT & indicators • Top level champion & full commitment from stakeholders (private sector engaged) • Focused investment in Education & Human Capital Development • Programs to capitalise on strategic advantages • Well developed infrastructure & conducive environment • Clear and stable policy, Good PR, Marketing & Outreach programs (publicise clear vision & directions for K-Economy) • Good sets of data/information for effective decision making
Toronto ONTARIO

VICTORIA Melbourne

Ottawa

SELANGOR

Note: Maps are all not to scale

IRELAND Dublin

87

4.4. Interpreting the Vision
Core Values
Rich in heritage Service oriented Progressive & dynamic Progress with Quality of Life

Core Purpose
• Economic growth - ICT to accelerate growth of Melaka (as a sector & enabler) • Bridging the digital divide - Make ICT education accessible & affordable to all citizens of Melaka • Wealth creation - Utilization of Knowledge and ICT to increase the wealth of citizens of Melaka

ICT VISION “Recapture past glory through rapid advancement in knowledge and ICT towards a fully developed K-State”
Envisioned Future
• ICT as an important sector in Melaka economy • ICT as the recognized enabler for Melaka economic sectors • A developed state with balanced spiritual and physical development • K-Society 88

4.5. Strategic Thrusts
• Leapfrog economic growth using ICT to spur knowledge based value creation • Align ICT program to drive state economic growth and social priorities • Focus and invest in key niche areas with quick wins and high potential returns • Complement federal & local initiatives to improve competitiveness, productivity & value-add

2

Government Service Delivery Excellence

Enhance Economic Competitiveness

3

THRUSTS

Community Sector

Private Sector

Churning Out Knowledge Workers 1

Public Sector

“Recapture past glory through rapid advancement in knowledge and ICT towards a fully developed K-State” 89

4.5.1. LEAPFROG economic growth using ICT to spur knowledge based value creation
… Melaka needs to maintain a minimum average GDP growth rate of 8% p.a. to achieve fully developed state status by 2020 …

Real Income Per Capita (Malaysia & Melaka)
40000 35000 RM (Current Price) 30000 25000 20000 15000 10000 5000 0 2000 2005 2010 Year 2015 2020

38000 32000 26000 38000

30805

17556 15244 16870 14582

23610

Melaka

Malaysia

Source: 8MP, OPP3 & MSCTC Analysis Note: Real Income Per Capita (Current Year)

Population – 0.7 mil Size – 1,650 km2 GDP – RM12.2 bil (2004) GDP growth – 7.4% (2003-2004) Per Capita – RM17,556 (2004)

90

4.5.2. ALIGN its ICT program to drive state economic growth and social priorities
Melaka should focus its efforts and resources on high growth sectors and sectors with high value add while gradually reduce dependencies on declining sectors and sectors with lower value add to the local economy Melaka GDP Distribution 2004
GDP(’87) – RM7.4 bil GDP/Capita (’87) – RM10.5k Construction 3% Agriculture & Mining 4%

Melaka GDP Distribution 2020
GDP’87 – RM23.8 bil GDP/Capita (’87) – RM26k Construction 2% Agriculture & Mining 3%

Manufacturing 28% Services 65%

3X

Manufacturing 20% FOR ILLUSTRATION ONLY Services 75%

… focus on strengths … … address weaknesses …
91

4.5.3. FOCUS and invest in key niche areas with quick wins and high potential returns
Market Size ICT as a Sector Manufacturing Growth Potential Competitive Adv. Access to Market

Guide: Market Size – Comparative Local & Global industry size Growth Potential – Industry growth rates Competitive Advantage – With respect to Melaka’s strategic strength Access to Market – Ease of entry

Services Shared Services/ Outsourcing (SSO) Creative Multimedia Bio-Informatics ICT as an Enabler Services Tourism Education Health Biotechnology Manufacturing Support

High

Medium

Low

92

4.5.4. COMPLEMENT federal & local initiatives to improve competitiveness, productivity & value-add

Ac ce Ac s ce s

National initiatives such as the following will be able to provide a cost effective way to rollout its ICT programs throughout the State and position Melaka in the development efforts by Federal Government: National Broadband Plan, MSC status for Institutions of Higher Learning, MSC flagships, National Incubator Network, National Agriculture Policy, National Policy on Biological Diversity Melaka needs to also provide compelling incentives in the form of hassle free bureaucracy for investors.
Entry

Realign
to ss R toes Re u o soue rc rc e s

Vision
Access to to Funds Access Funds
s s s s s s e e e e et se r r r r s s tr s atrk t t t t t ate ate ke l il t ilita ar M l l l o cili F Fac M F a ss t io n s s s s s t n o o M tiiiiiion c c c c d d d d d sce m d a sct m diiat m m es erme A A A A A Ac rme ce nterm A Dsn Ac Diiiiiiisiint D

s

Public SECTOR SECTOR Sector

PUBLIC PUBLIC

To t al ea Tn ts/ len tsR H/ DR H D

Community Private COMMUNITY COMMUNITY PRIVATE PRIVATE Sector Sector SECTOR SECTOR SECTOR SECTOR

n n n n n i n n io ai ai ai ai ioa ioat rtm ma ma f r f r f r f r for Inf f Ir oI oI oI oI noo noo s s s sI s It ts e e eo eo es s e c cs cs ec ecc cAc A Ac

Access to to Incentives Access Incentives

Prepare
Source: MSCTC“ VIPER Model ”

Ac cec As ce st ss o

Identify

93

4.5.4. COMPLEMENT federal & local initiatives to improve competitiveness, productivity & value-add (2)
There are many potential investment/funding avenues available. Melaka can tap and leverage on the vast amounts of funding available (RM 2.5 billion) for ICT and also the key services industries
Funding Type Govt. Allocation ICT Industry Industrial Development RM 2.5 bil SME– RM1 bil Agricultural Development RM 7.8 bil Tourism Development RM 1 bil Infra/Utility Development RM 27bBil Transport: RM 22bil Utilities: RM 5.5 bil Comm RM 228 mil Other Ministries MITI, MIDA – incentives for manufacturing, agriculture & tourism

Venture Capital Grants Focus

20 Venture Capitalist RM2bil 12 Grant Schemes with grants totaling RM500 m To help spur the To strengthen Continue to be To obtain rapid growth of operations and guided by NAP3 tourism growth technology and capabilities of to be a modern, on a sustainable also nurture R&D enterprises in dynamic and basis activities in the order to compete competitive ICT industry liberally and sector globally Malaysian owned co (30%) MSC Status would be more advantageous

Increase efficiency, productivity, quality and reliability of infrastructure facilities and services

Eligibility

94

4.5.4. Strategic Thrust 4: COMPLEMENT federal & local initiatives to improve competitiveness, productivity & value-add (3)
Grant Scheme 1. Commercialization of R&D (CRFD) 2. Demonstrator Application Grant Scheme (DAGS) 3. E-Manufacturing Grant Focus To provide partial funding to qualified R&D projects to be commercialized To encourage meaningful participation in ICT-based projects and to encourage the use of knowledge for value creation To assist SMEs to used ICT to improve their competitiveness, efficiency & productivity To assist SMEs to enhance their engineering design capabilities and enable them to carry out their own design in-house To build strong and innovative industrial technology capability across all sectors To focus on R&D activities on areas which have potential for enhancing the national socio-economic position Allocation RM 100 mil RM 100 mil SMIDEC SMIDEC MOSTE IRPA MATRADE RM 100 mil RM 5 mil MTDC

4. Engineering Design Grant 5.Industry R&D Grant Scheme (IGS) 6.Intensification of Research in Priority Areas (IRPA) 7. Market Development To assist SMEs in undertaking activities for the development of Grant (MDG) export markets 8. MSC R&D Grant Scheme To assist in developing relevant multimedia technologies & (MGS) applications in line with MSC 9. Rosettanet Grant (RNG) To prepare Malaysian cos for early adoption and implementation of RosettaNet 10. Technology Acquisition To promote technology upgrading through the introduction & Fund (TAF) utilization of modern and efficient technology in manufacturing & physical development of existing & new products & processes

95

Melaka ICT Strategic Blueprint

5.0. THE ICT STRATEGIC FRAMEWORK

5.1. Overview of the Strategic ICT Framework
Recapture past glory through rapid advancement in knowledge and ICT towards a fully developed K-State
Strategic Direction 1 Increase economic wealth by focusing on high growth sectors Strategic Enabler 1 ICT Infrastructure & Infostructure Strategic Enabler 2 Education & skills Strategic Actions Develop and nurture high growth sectors to drive towards 2010 Maximize economic potential of high growth sectors using ICT Promote conducive environment to encourage higher valueadd activities Build partnerships with relevant organizations and align policies and incentives Gradually reduce dependency on traditional economic drivers Strategic Direction 2 Develop KnowledgeBased Society & Develop Responsive Skill Base Strategic Actions Enhance infrastructure to improve information dissemination/availability Create ICT awareness and cultivate interest in knowledge and ICT Develop or expand human capital through targeted knowledge and skills development Create incentives to encourage partnership between IHLs, R&D centres and the industry Strategic Direction 3 Create a Client-Friendly Government Strategic Actions Making the Government more efficient, transparent and accessible to its clients using the power of ICT Support transition to electronic government environment through retraining and change management programs Instill commercially oriented customer relationship management processes and culture in the government

Strategic Enabler 3 Entrepreneurship

Strategic Enabler 4 Market Relationships

97

5.2. Strategic Direction I: Focusing on High Growth Sector
Strategic Direction 1 focuses on key actions to be taken to guide the state towards K-Economy status and ultimately move Melaka towards being a developed K-State by 2010: Focus on high growth sectors of the future which have the potential to accelerate GDP growth of the State by 8% per annum. These high growth sectors are the Tourism Sector, ICT Sector and Biotechnology Sector Leverage on the power of ICT to maximize potential benefits from new focus sectors. This involves the transformation of traditional business processes onto new digital platforms to exploit untapped potential Promote an attractive business environment with relevant supporting infrastructure to encourage higher value-add activities and attract interest and investments from the commercial sector to achieve critical mass in chosen sectors Develop strong partnerships with critical organizations such as tourism product suppliers, telecommunications providers, property developers, healthcare sector, IHLs, transportation sector and etc to ensure that cohesive move is made to create the right platform on which key sectors can thrive. Policies and incentives from the Government should be realigned to facilitate and mould commercial partners towards the state’s economic agenda Although it is important to maintain traditional economic sectors to maintain momentum in employment and GDP figures, conscious effort should be made to ensure that further efforts to attract investments are balanced against the sectors’ growth potential in supporting the state’s drive towards fully develop status - 2010
98

Strategic Direction 1 Increase economic wealth by focusing on high growth sectors Strategic Actions Develop and nurture high growth sectors to drive towards 2010 Maximize economic potential of high growth sectors using ICT Promote conducive environment to encourage higher valueadd activities Build partnerships with relevant organizations and align policies and incentives Gradually reduce dependency on traditional economic drivers

5.3. Strategic Direction II: Developing K-Society and the Necessary Skill Base
Strategic Direction 2 Develop KnowledgeBased Society & Develop Responsive Skill Base Strategic Actions Enhance infrastructure to improve information dissemination/availability Create ICT awareness and cultivate interest in knowledge and ICT Develop or expand human capital through targeted knowledge and skills development Create incentives to encourage partnership between IHLs, R&D centres and the industry

Strategic Direction II focuses on key actions to be taken to mould the citizens of Melaka towards K-Society status which is imperative to move Melaka towards a developed K-State by 2010: Efforts should be made to enhance infrastructure and facilitate information dissemination capabilities. This will primarily involve an deliberate effort from the State Government to create a 5% critical mass of users which is critical to encourage vendors of last mile connection to be commercially active.– promotion in Melaka? – wireless city - Promote broadband/wireless access at key community areas Continue efforts to bridge the digital divide by creating programs focusing on creating ICT awareness and to cultivate interest in knowledge and utilisation of ICT. This may involve further developing the existing EMelaka program to focus on awareness campaigns for communities with low exposure to ICT (e.g. populations in rural areas and non-k-workers). Develop and expand human capital via programs dedicated to educate and train relevant entrepreneurs and workers in the targeted high growth sectors Create partnerships with IHLs, R&D Centres and the private sector to ensure that relevant academic courses and research work are develop to maximize the potential of the targeted high growth sectors (e.g. Tourism Diplomas, Hotel & Catering Degrees and Content Development on Culture and Edutainment)
99

5.4. Strategic Direction III: Creating a “Client-Friendly” Government
Strategic Direction 3 Create a Client-Friendly Government Strategic Actions Making the Government more efficient, transparent and accessible to its clients using the power of ICT Support transition to electronic government environment through retraining and change management programs Instill commercially oriented customer relationship management processes and culture in the government

Strategic Direction III focuses on key actions to be taken to steer the State Government of Melaka towards K-Government status – an essential ingredient to move Melaka towards a developed K-State by 2010: Making the Government more efficient, transparent and accessible to its clients using the power of ICT. This will include connecting the services of PBTs and Government Departments to the internet and promote higher accountability and transparency in service offerings. Review/realign processes and implement EG at state level to promote an efficient, transparent and accessible government Implement Change Management program parallel to development of new processes to facilitate transition of processes and guide users through the entire Awareness, Interest, Desire and Acceptance (AIDA) cycle Implement a comprehensive Client Relationship Management solution for the entire state government to create a client friendly environment for businesses and citizens. This will not only serve to increase the efficiency of the State Government but it will also increase citizens’ trust in the Government efforts to be more citizen centric – an important ingredient in a successful K-State.

100

Melaka ICT Strategic Blueprint

6.0. PROGRAMS AND PROJECTS

6.1. Strategic Direction I: Focusing on High Growth Sector

Program 2 Program 2 Attract SSO Firms Attract SSO Firms Program 1 Program 1 Tourism Promotion Tourism Promotion Portal Portal
Strategic Direction 1 Strategic Direction 1 Increase economic Increase economic wealth by focusing on wealth by focusing on high growth sectors high growth sectors

Program 33 Program Tourism Content Tourism Content Development Development

Program 66 Program Biotechnology & Biotechnology & Bioinformatics Bioinformatics

Program 4 Program 4 Re-position Re-position Health/Education Health/Education Tourism Tourism

Program 55 Program Partnerships for Partnerships for Organized Growth Organized Growth

102

6.1.1. SD-1 Program: Tourism Promotion Portal
INITIATIVE • To upgrade and unify current tourism related websites in Melaka under one comprehensive tourism portal sponsored initially by the State Government – portal may be handed over to the private sector once critical mass is achieved • To provide opportunities for small and medium players in the Melaka Tourism Sector to offer their offerings on the internet • To facilitate electronic purchase of tourism products in Melaka RATIONALE • At present, the current portal is static and non-interactive. Tourists should be able to do everything on the internet from booking flight to booking hotel rooms to finding information about in-city transportation to operating hours of tourist spots. • Electronic purchase over the internet can be stimulated if it is fully backed by a trusted party the such as the State Government • A State Government backed portal will make it financially feasible for small to medium tourism product supplier to market their product electronically POTENTIAL BENEFITS • Exposing the local tourism sector to more tourists specifically from developed nations with higher spending power • 40%-60% boost to tourism earnings in the State above the existing growth pattern – estimated increase of RM1.3 billion to RM2.0 billion of GDP per annum
103

E

6.1.2. SD-1 Program: Attract SSO Firms
INITIATIVE • To attract Shared Services Outsourcing Firms to choose Hang Tuah Jaya as the preferred centre of operations
E

RATIONALE

• Melaka’s position in between the Klang Valley and Singapore makes it an attractive location for SSO Firms • The creation of a Cybercentre in Melaka will enable Melaka create the ideal business environment (high quality infrastructures and performance guarantees) which is conducive to SSO business • Melaka posses the right balance of hard and soft infrastructures with reasonably high quality of life to attract SSO businesses • Currently, Singapore Telecom is using Melaka for its SSO due to its cost advantage and various factors conducive to the SSO business POTENTIAL BENEFITS • Creation of employments for 10,000 to 15,000 knowledge-workers • Attracting high quality telecommunications and other business related infrastructures which will contribute towards creating the critical mass to enable comprehensive rollout of broadband in the State • Generating consistent and assured income for the state and boosting the State’s GDP by RM1 –RM2 billion per annum • The influx of k-workers will also create a positive impact to other sectors of the local economy to further boost the local service sector
104

6.1.3. SD-1 Program: Tourism Content Development
INITIATIVE • To develop a Tourism/Culture/Multimedia Content Industry through involvement from the Government, IHLs and local technopreneurs serving the Melaka tourism sector. RATIONALE
E

• Melaka possess the right mix of IHLs to support a Tourism/Culture/Multimedia Content Industry • Virtual tours, clips and scenes will be developed using existing archives and scriptures. Output from the Content Industry will then serve to increase the quality of tourism products (e.g. museums, zoos, tourist parks, etc) and attract nurture more interest and boost revenues from the tourism sector. • As content will be required to be continuously updated, a steady stream of income will be generated to create a sustainable growth to the proposed Content Industry and attract more technopreneurs to participate and locate their operations in Melaka POTENTIAL BENEFITS • Contributing towards making Melaka a more “event tourism” oriented from the existing “place tourism” oriented. This will encourage more repeat visits by tourists and further boost income and growth of the local tourism sector • Creating Melaka’s own Content Industry generating up to RM500 million demand in the local economy • Encourage the creation of critical mass in the Content Sector which will ultimately grow beyond serving the local tourism sector
105

6.1.4. SD-1 Program: Re-position Health/Education Tourism
INITIATIVE • To collaborate with the Health and Education sectors and review/reposition offerings on Health and Education Tourism around suitable niche within each sector (e.g. Education Tourism to focus on tourism management, Hotel catering, public relations, multimedia content development, etc. while Health Tourism to focus on Cardilogy, Cancer, etc) • Including the re-packaged Health and Tourism sector products on the Central Tourism Portal initiative highlighted under SD-1 RATIONALE • Currently each health/education tourism sector is promoting itself in isolation without specific focus. Both sector needs to be repositioned and strengthen in specific niche areas to create a clearer market positioning to their clients and attract more high value clients • Melaka needs to ensure that the market it carves for itself in both sectors are sustainable. A clear market strategy which involves specific niche and focus areas will make Melaka more attractive to potential clients while at the same time ensures that investments made in marketing reap maximum returns. Carving the right niche and focus areas may also reduce effect of competing and similar sectors in neighboring nations POTENTIAL BENEFITS • Advertising and promotion cost would be reduced as it is shared between the health/education and the tourism sectors • Stronger brand as Melaka places herself in a niche specialized market

E

106

6.1.5. SD-1 Program: Partnerships for Organized Growth
INITIATIVE • To create partnerships with commercial and IHL organizations to ensure that other sectors of the economy grows in tandem with the demand created by key focus sectors. RATIONALE
E

• Requirement of knowledge workers and technology companies such as higher quality housing, entertainment, office space and etc can be developed to further improve the commercial attractiveness of the state for business relocations and as centre of operations • Demand generated resulting from the expansion of focus sectors (tourism, ICT and biotechnology sectors) can be anticipated and met to encourage a higher yet more balanced growth in the local economy

POTENTIAL BENEFITS • Increase commercial attractiveness of the Melaka State to SSO Organizations, Technology Companies and Knowledge Workers • Facilitate a balanced growth in other sectors of the economy such as properties, construction, education and services

107

6.1.6. SD-1 Program: Biotechnology & Bioinformatics
INITIATIVE • Focus on biotechnology and encourage the use ICT to maximize potential. Set up database centre for biotech & bioinformatics • personalized medicine & healthcare • traditional herbal medicinal plants • cataloging DNA marker technology for herbal & traditional medicine • database screening for anti cancer RATIONALE • Growth of biotechnology sector estimated to average from 12% to 17% annually will further boost the State’s GDP • Biotechnology and bioinformatics sector is expected to be the leading growth sector in the world economy by 2030 and will continue to lead for a century to come POTENTIAL BENEFITS • Improved processes of biotech product, with spillover effect of improving cottage industries, e.g.: higher quality and longer lasting cencaluk, dodol and gula melaka enabling bigger commercial possibilities and higher profits • Participate in the high growing Malaysian herbal sector (estimated at RM2 billion annually) which is expected to grow to as large as RM13 billion by 2020

E

108

6.2. Strategic Direction II: Developing K-Society and the Necessary Skill Base

Program 11 Program Development of Critical Development of Critical Mass Mass

Strategic Direction 2 Strategic Direction 2 Develop KnowledgeDevelop KnowledgeBased Society & Develop Based Society & Develop Responsive Skill Base Responsive Skill Base

Program 44 Program Aligning IHLs Aligning IHLs

Program 22 Program E-Melaka E-Melaka

109

6.2.1. SD-2 Program: Development of Critical Mass
INITIATIVE • To develop critical mass of broadband users to encourage industry players to rollout infrastructure at the last mile. For the State Government, this shall involve connecting schools, IHLs, hospitals, government buildings, community centers, shopping malls, mosque, libraries and etc
E

RATIONALE • According to the National Broadband Plan, Malaysia has abundant availability of domestic backbone capacity as compared to last mile broadband infrastructure – a critical mass (5% connectivity) will encourage industry players to rollout infrastructure at the last mile • Broadband is critical in the development of k-society, k-economy and the quest to be a developed k-state: • Pre-requisite for high-speed info-communications access • New benchmark on national infrastructure and country competitiveness • Support expansion of Multimedia Super Corridor (MSC) nationwide • Facilitate the rollout of e-government and other flagship applications • Potential for bridging the digital divide hence the knowledge divide POTENTIAL BENEFITS • Intervention by the State Government (i.e. connecting Government agencies, schools, hospitals, etc) in developing critical mass will assist telecommunications industry to rollout broadband widely within the State and help in the efforts to develop a k-society in Melaka

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6.2.2. SD-2 Program: e-Melaka
INITIATIVE • To persist and continue with e-Melaka program to connect communities and increase ICT awareness specifically among rural populations and other segment of the population which are not exposed to ICT development RATIONALE • In its effort to develop a k-society, community and awareness program such as e-Melaka is important to ensure that • ICT awareness campaigns are implemented for population segments that are still not exposed to ICT development • Promote the State Government’s efforts to leverage on ICT to be more transparent and more customer friendly. This will ensure that more support can be gathered from the public - a critical ingredient of success

POTENTIAL BENEFITS • Increase visibility of the State Government efforts to the public and will help the Government to gather support from the public to bridge the digital divide • Act as a promotional campaign to inform the public of new developed e-Government applications and improve the ability of the Government to deliver its services more efficiently and effectively

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6.2.3. SD-2 Program: Aligning IHLs
INITIATIVE • To align IHLs in Melaka to offer more courses relevant to focus economic sectors (i.e. tourism, ICT and biotechnology sectors) • To encourage IHLs to get relevant accreditation from Lembaga Akreditasi Negara (LAN) and be more attractive to both local and overseas students

RATIONALE • As courses are recognized by LAN, IHLs will be more attractive to students, local and foreign. • Currently, there are not many IHLs offering courses in the services industry and Melaka is able to fill the niche

POTENTIAL BENEFITS • Development of k-workers which are suitable and relevant to key economic sectors • Creating an academic centre of excellence in the tourism and ICT sectors • Foreign students will help generate income through long stay

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6.3. Strategic Direction III: Creating a “Client-Friendly” Government

Program 11 Program Connecting PBTs/Depts Connecting PBTs/Depts

Program 44 Program Customer Relationship Customer Relationship Management Management

Strategic Direction 3 Create a Client-Friendly Government

Program 22 Program Implement EG Implement EG

Program 33 Program Change Management Change Management

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6.3.1. SD-3 Program: Connecting PBTs/Depts
INITIATIVE • To connect PBTs and government departments to each other creating a web of information • Offering of services online

RATIONALE

E

• Improve efficiency of processes by educating the public • Improve transparency of government processes and preparing the government for the new kenvironment • Providing the public with timely and accurate information to propel the local economy forward and support growth of key economic sectors

POTENTIAL BENEFITS • Reduced bureaucracy in Government processes and increase efficiency of government service delivery • Allow the State Government to focus on more strategic issue relating to developing sustainable economic growth reduce time required to deal with issues resulting from operational ineficiencies

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6.3.2. SD-3 Program: Implement EG
INITIATIVE • To fully implement electronic government at the State Government - the eGovernment programme aims at reinventing how the State Government works and improve the quality of interactions with citizens and businesses through improved connectivity, better access to information and services and better processes and systems. RATIONALE • To integrate all State Government and federal EG initiatives and develop e-clusters i.e. tourism , education, health, ICT and biotechnology • To enhance electronic delivery channel and mobile capability for Government portal • Multi-channel delivery of services (Internet, WAP, Public access points and Call centres) • To enhance efficiency of State Government’s overall service delivery

POTENTIAL BENEFITS • Creating a more “client-friendly” government - increase efficiency of State Government process and reduce unnecessary bureaucracy • Create performance culture where processes require less “turn-around” time • Implementation of one of the key indicators reflecting the transformation of Melaka towards a developed k-state

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6.3.3. SD-3 Program: Change Management
INITIATIVE • To implement change management programs throughout the entire State Government parallel to the implementation of e-Government and the rollout of online services from PBTs and other agencies RATIONALE
E

• Many are not ready to implement EG without training – Change Management programs will ensure that the advancement and improvement in technology and processes are supported by the appropriate quality and quantity of training programs and awareness campaigns to win the total support and commitment from Government staff • Past experience and lessons learned from the implementation of e-Government at Federal Government has shown that appropriate investment in Change Management is critical to ensure both people and technology can function in harmony to meet pre-implementation goals

POTENTIAL BENEFITS • Ensure that the transition from traditional processes to technology driven processes can be implemented smoothly with minimal user resistance • Ensure that all affected Government staff are well educated of the benefits of new processes and e-Government as a whole which is important as any negative feedback/perception from Government staff can negatively affect Government services to the public. Degradation of services resulting from lack of investment in Change Management may eliminate many potential benefits that should be reaped with e-Government implementation
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6.3.4. SD-3 Program: Customer Relationship Management
INITIATIVE • To implement a CRM solution for the entire state government to create a client friendly environment for businesses and citizens

RATIONALE

E

• CRM solutions will ensure that all issues and problems arising from Government services rendered to business and the public are handled swiftly • Implementation of such solutions will reduce bureaucracy and highlight weaknesses in Government processes facilitating continuous improvement and promoting a performance driven culture

POTENTIAL BENEFITS • Melaka to be attractive for business due to the transparent and client-friendly environment • Create Government that is more knowledge and information driven as opposed to the traditional Government that is slower and process driven

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6.4. Summary of Programs and Projects
Program Description • Tourism Promotion Portal • Attracting SSO Firms • Develop Tourism Content Development • Re-position Health and Education Tourism • Partnership for Organized Growth • Develop Biotechnology and Bioinformatics Sector • Develop Critical Mass to facilitate broadband usage • Move e-Melaka into Second Phase • Aligning IHLs to develop Melaka as Centre of Excellence • Connecting PBTs and Departments • Implement Electronic Government at State Government • Implement Change Management program • Implement Customer Relationship Management Application Owner BPP MSIC BPP BPP UPEN IBM MICTH K-Economy UPEN JKM JKM JKM JKM Estimated Budget RM15 mil RM5 mil RM10 mil Nil Nil RM3 mil RM5 mil RM5 mil Nil RM15 mil RM30 mil RM10 mil RM10 mil

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Melaka ICT Strategic Blueprint

7.0. IMPLEMENTATION TIMELINE

7. Implementation Timeline
2006 Project Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 Project 7 Project 8 Project 9 Project 10 Project 11 Project 12 Project 13 Implement CRM 120
Q1 Q2 Q3 Q4 Q1

2007
Q2 Q3 Q4 Q1

2008
Q2 Q3 Q4 Q1

2009
Q2 Q3 Q4 Q1

2010
Q2 Q3 Q4

Tourism Promotion Portal Attracting SSO Firms Tourism Content Development Reposition Health & Education Tourism Smart Partnership for Organized Growth Develop Biotechnology & Bioinformatics Sector Critical Mass for Broadband eMelaka – Phase II Melaka as Centre of Excellence Connecting PBTs/Deptst Implementing e-Government Change Management

Melaka ICT Strategic Blueprint

8.0. CONCLUSION

8. Conclusion
Enhance Economic Competitiveness RM43 mil
Content Development SSO Sector Development 10 3 5

25%

Developing K-Society RM10 mil
Biotechnology Broadband Critical Mass E-Melaka

20%

RM108 million for 13 projects within 5 years towards K-State development

Tourism Promotion Portal

CRM Solution

Critical Success Factors: “Result oriented” - Focus on ICT Connecting PBTs 5 implementation and buy-in rather than 5 hardware and infrastructure 15 “People centric” - K-Society (K-Workers) development utmost importance to fuel 15 economic growth in service centric environment “Synergy & Sharing” - Integrated & 10 Collaborative implementation vital across public sector, private sector and 30 communities 10 “Control over things...then things under control” – Professional management of E-Government, Change projects (K-State program) needs capable Management delivery focused team, hands-on, onground RM65mil “Proactive not reactive” – Projects need Government Service Delivery to have longer term view, regional and global focus and responsive to market Excellence changes ad dynamism 55% 122

Thank you

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